The addition to total product resulting from employing one more unit of a productive resource is the _

Question 1The addition to total product resulting from employing one more unit of a productive resource is the __________.

  marginal input

  marginal product

  average product

  total product

 Question 2An example of a horizontally integrated firm is one that __________.

  owns several plants, each manufacturing the same product

  owns several plants, each handling a different stage of production

  has several factories making different products within the same region

  produces a variety of goods and sells them in widely disparate markets

 Question 3A description of the amounts of output expected from various combinations of inputs is called __________.

  technical efficiency

  a production function

  economic efficiency

  an economic forecast

 Question 4In a production function, in the short run, some inputs are fixed. In the long run, all inputs are __________.

  fixed

  variable

  increasing

  decreasing

Question 5If Geeta buys wood and piano wire every month to manufacture pianos in the plant she has leased for 4 years, she is operating __________.

  without a production function

  in the short run

  in the long run

  a vertically integrated firm

 Question 6A firm should leave production unchanged when __________.

  marginal cost ≥ marginal revenue

  marginal cost > marginal revenue

  marginal cost = marginal revenue

  marginal cost < marginal revenue

 Question 7A company’s profits are greatest when __________ by the largest possible amount.

  marginal revenue exceeds total revenue

  explicit costs exceed opportunity costs

  short-run profits exceed long-run profits

  total revenue exceeds total cost

 Question 8Economic profit is calculated as __________.

  total revenue – opportunity costs

  total revenue – implicit costs

  total revenue – (explicit costs + implicit costs)

  total revenue – explicit costs

 Question 9The rate of return that is necessary to keep capital and enterprise in an industry is known as __________ profit.

  accounting

  opportunity

  economic

  normal

 Question 10The long-run decision regarding the size of a firm’s physical operations is determined by the selection of the desired __________.

  short-run AC curve

  long-run AC curve

  plant size that matches the fixed quantity of labor

  quantity of labor supported by the fixed capital